VakıfBank IR App. Available at. Earnings Presentation BRSA Bank-Only 3Q18 November 9, 2018

Transcription

1 VakıfBank IR App. Available at Earnings Presentation BRSA Bank-Only November 9, 2018

2 Earnings and Ratios Net Income (TL million) ROAE (%) 2, % 3, ppt better than sector ppt better than sector 1, , , % Sector VB Sector VB 1Q17 2Q17 3Q17 1Q18 2Q18 Additional provisioning of TL 700 million set aside for Stage I and Stage II loans NPL Coverage Ratio came flattish QoQ at ~77% conservatively higher than peers average Stage II Coverage Ratio prudently improved to 9.8% in from 5.3% in 2Q18 2

3 Drivers of Strong Performance & Key Highlights of Effective NIM management NIM expanded 75 bps QoQ to 4.95% from 4.20% in 2Q18. cumulative NIM came flattish at 4.22% vs 2017 average NIM of 4.24%. CPI support increased in, recent CPI readings promise further increase in 4Q18 Stellar fee performance supported by diversified fee sources fee growth came strong at 62.2% YoY. Quarterly fee growth materialized at 17.3%, thanks to increased focus on fee generation. Fee/Opex ratio further increased to 39.4% in vs 30.1% in Further enhanced solvency ratios amid challenging macro conditions Turkey s first ever Additional Tier-1 issuance with an amount of TL 5 billion was accomplished in. The transaction had 191 bps positive impact on Tier-1 and total CAR. Disciplined and sound liquidity levels maintained Total CAR came at 17.23% vs 15.02% in 1H18. (CAR would be 15.26% without BRSA forbearances, which is up by 24 bps compared to 1H18) Tier I came at 13.69% vs in 1H18. (CAR would be 11.98% without BRSA Forbearances, which is up by 17 bps compared to 1H18) Fresh DPR securitization funding with an amount of USD 300 million and 10 years maturity. Quarterly FX deposit growth in USD terms came at 3% vs sector s decline of 6%. FC LCR came at % vs required level of 70%. Total LCR came at % vs required level of 90%. October end FC LCR remained strong at 275% despite Eurobond redemption USD 500 million and syndication repayment of USD 856 million equivale Solid asset quality and conservatively further increased provisioning levels NPL ratio came flattish QoQ at 3.90% without any asset sale and write-off. NPL ratio came flattish QoQ at 77% vs sector s decline of 270 bps to 70%. Stage-2 provisioning further increased to 9.8% in from 5.3% in 2Q18. Total NPL coverage increased to 111.8% in from 104% in 2Q18. 3

4 P&L Details 1, ,180 11,694 (3,951) 8,250 (3,924) (709) 3,110 % vs 9M17 Net Interest Income Net Fees and Commissions Dividend Income Net Trading Income Other Income Total Revenue Operating Expenses Provisions Taxes Net Income +31% +62% 39% +371% 0% +35% +23% +104% 1% +10% 3, ,632 (1,337) (2,134) (176) 985 % vs 2Q18 Net Interest Income Net Fees and Commissions Dividend Income Net Trading Income Other Income Total Revenue Operating Expenses Provisions Taxes Net Income +31% +17% -83% +48% -365% +45% -1% +330% -38% -8% 4

5 Revenue breakdown Total Revenues (TL million) Revenue Breakdown (%) 35.0% 81.2% 8,660 11,694 2,557 4,632 3, % Trading 4.9 Net F&C 13.3 Other Dividend Trading 1.4 Net F&C 11.1 Other M17 Dividend 1.1 9M17 3Q17 2Q18 NII 70.6 NII 72.8 Net Interest Income (TL million) 30.9% 8,250 6,303 1, % 3,372 2, % Core Banking Revenues (TL million)* 35.0% 9,805 7,261 2, % 3,972 3, % 9M17 3Q17 2Q18 9M17 3Q17 2Q18 * Core Banking Revenues= NII+NFC 5

6 NIM, Spreads and Costs Net Interest Margin (NIM %) Breakdown of Interest Income from Securities (TL million)** ,989 1,376 TL ~1.5 billion CPI income expected in 4Q M Q17 2Q18 3Q17 4Q17 1Q18 2Q18 Interest Income from other Securities Interest Income from CPI Linkers Core Spreads (%) TL Loan Yields TL Deposit Costs FC Loan Yields FC Deposit Costs The effect of 1 ppt decrease/increase in CPI on pre-tax income is ~TL 151 million ~ 22 bps impact on quarterly NIM CPI amount: TL 15.8 billion CPI real yield: 2.48% CPI estimate revised to 20.0% in 34% CPI Linker s share in total securities 3Q17 4Q17 2Q18 *CPI expectation used in 1Q18 was 8.4%; 9.05% in 2Q18 and 20.0% in. 6

7 Stellar fee growth supported by diversified fee sources Net Fee & Commission Income (TL million) 62.2% 1, Inquiry & Expertise Other 4% Money Transfer 5% 7% 31% Payment systems Breakdown of Net Fee & Commission Income 9M17 Insurance 6% Cash Loans 24% 23% Non-Cash Loans Inquiry & Expertise 7% Payment systems 30% Money Transfer 5% 6% Insurance 21% Cash Loans 31% Non-Cash Loans 9M17 Fee/Opex (%) 68.5% % ppt 3Q17 2Q18 9M

8 Strong efficiency maintained despite high inflation driven cost growth Operating Expenses (TL million) 22.8% Breakdown of OPEX Cost/Income (%) (3.4 ppt) 3, , % 53% HR Cost Non-HR Cost 9M17 9M % Jaws Ratio (%, YoY) 1, , ,337.1 (1.0%) 35.0 Stellar Jaws Ratio Q17 2Q18 Revenue Growth Opex Growth Jaws Ratio 8

9 Coverage Ratios INVESTOR RELATIONS Well diversified & stable loan breakdown Breakdown of Loans (TL billion) Portfolio Breakdown (%) Loan Portfolio Breakdown (TL Billion) Other 1 SME Mortgage GPC SME Retail Com.&Corp Q Gross Loans Stage III Stage II Stage I Com.& Corp QoQ YtD TL Loan Growth 1.5% 12.0% 2Q18 3Q17 4Q17 2Q18 FC Loan Growth (in USD) 3.2% 7.6% Stage I 0.9% 0.9% Stage II 5.3% 9.8% Stage III 77.8% 77.0% Breakdown of Loans (TL billion) % % 29% % 38% 71% 68% 62% 3Q17 4Q17 2Q18 FC TL Breakdown of FC Loans Project Finance Export Loans Working Capital and Other 1 Other includes credit cards, overdraft and auto loans. Share QoQ (US$) YoY (US$) 64% 2% 9% 9% (3%) 6% 27% 8% 12% CGF Loans (TL bn) Q18 1H18 Total CGF Guarantee Limit Originated Amount Outstanding Amount after redemptions TL 6.4 billion amortisation 9

10 Breakdown of Loan Portfolio Sector Breakdown of Cash Loans Breakdown of Construction Loans Retail Loans 20% Other 13% Manufacturing 14% Construction 10% Energy 6% Stage II TL 3.1 billion Construction 12.4% 4.4% Stage III TL 1.1 billion Stage I TL 20.6 billion Real Estate 5% Logistic& 13% Transportation Tourism 4% Wholesale & Retail Trade 14% 83.2% Limited concentration in retail developers Selective approach to construction Breakdown of Project Finance Breakdown of Energy Loans Service (Including Tourism, Health Education) 12% Infrastucture 11% Other 35% Energy 67% Production Distribution 33% Breakdown of Production Share of Renewable: 50% Share of Local Coal: 39 % Share of Other: 24% 42% 10

11 Stage II Loans are rising due to macroeconomic developments Stage II Loans Breakdown (TL Billion) Sector Breakdown of Stage II Loans Total Stage II Loans Restructured Past Due 30 Days % 14.0% 22.4% 16.1% 48.1% 72.0% 53.3% 56.1% Retail Loans 3.8% Other 10.9% Manufacturing 15.8% SICR* 40.4% 14.0% 24.3% 27.8% 4Q17 1Q18 2Q18 Real Estate 12.2% Construction Stage II Loans (TL million) 20.7% 4.40% 3.80% 4.05% 6.26% Share in total loans 14, % Logistic&Transportation 3.0% Tourism 15.7% Wholesale&Retail Trade 6.8% Energy 7,650 6,949 8,517 3Q17 4Q17 2Q18 *Significant Increase in Credit Risk. 11

12 Yet NPL ratio remained flattish on a quarterly basis NPL (TL million)* Reported and Comparable NPL Ratios (%) 8,508 1, , NPL 2Q18 New NPL Collections NPL Sector Breakdown of Stage III Loans Retail Loans 23.5% Real Estate 3.5% Other 9.0% Logistic & Transportation 5.0% 1.7% Tourism Manufacturing 17.6% * Accumulated NPL, no write off&no asset sale ** NPL Ratio, if legacy NPL before 2013 excluded Construction 11.4% Wholesale & Retail Trade 28.3% NPL growth still under control despite challenging conditions thanks to prudent origination Q17 4Q17 2Q18 Sector Q17 4Q17 2Q18 Sector; W/O NPL sales&write-offs W/O Legacy NPL ** 12

13 Further increased provisioning levels Net Expected Credit Losses Cost of Risk Ratios (bps) (Thousand TL) Net COR Expected Credit Losses 3,921,887 Gross COR Stage III 2,181,567 Provision Reversals under other income 966,074 9M Q17 2Q18 Stage III 770,089 Coverage Ratios (%) Net Expected Credit Losses 1,411,478 Net CoR (Stage III) 90 bps Additional provisioning of TL 700 million set aside for Stage I and Stage II loans Stage II Coverage Ratio prudently improved to 9.8% in from 5.3% in 2Q18 Total Coverage Ratio improved to 111% in from 104% in 2Q VB Stage III Coverage Ratio 70.1 Sector 13

14 Customer deposits driven well diversified funding structure Total Deposits (TL billion) Loan/Deposit Ratios (%) % % 33% 67% 34% 66% 41% 59% 3Q17 4Q17 2Q18 QoQ YoY FC TL 53% Non- Retail Deposits 47% Retail Deposits VB Sector ppt lower TL LtD Ratio compared to sector TL Deposits Growth 0.1% 10.7% FC Deposits Growth (in USD) Currency Breakdown of Deposits 3.0% 5.6% vs Sector FC deposit decline of 6% QoQ billion TL Blended VB 2Q18 VB QoQ VB YoY Sector QoQ Sector YoY Total Deposits % 31% 10% 30% TL 113 0% 11% 3% 13% TL FC ($) 13 3% 6% -6% -9% 17% 83% Demand Deposits Term Deposits Customer ** % 32% N.A. N.A. Demand 34 5% 22% 11% 35% Repo *** 27 7% 120% -31% 49% TL 23 7% 157% -39% 127% Borrowings (Funds Borrowed + Securities Issued + Sub-debt) FC 4-16% 15% -12% -8% 90 30% 82% 20% 61% *Including syndication, securitization, eurobond and covered bond issuances. **Excluding bank deposits. ***Includes CBRT and market TL&other FC repo transactions 14

15 Solid FC liquidity and diversified international funding Breakdown of International Funding Maturity Profile of External Debt (Million USD) Subordinated Bond 11% Covered Bond 10% Eurobond 21% Nov.- Dec ,810 Short-Term Borrowing: %37 IFI 12% 13% Securitization USD ~13 billion Total International Borrowing 14% 18% Post Finance Syndication Total FC Liquid assets: USD ~3.1 million > October 2018, fresh DPR Transaction USD 300 million, 10 years maturity Share of international borrowing in total liabilities: ~22% 7,129 Long-Term Borrowing: %63 End-October FC LCR remained strong at 275% despite Eurobond redemption USD 500 million and syndication repayment of USD 856 million 15

16 Stellar solvency ratios amid challenging macro conditions Capital Adequacy Ratio (%) Solvency Ratios without BRSA Forbearances (%) Tier I ~14.2 ~ 17.6 Required Tier 1 Level % CAR Tier I Required CAR Level % Q18 2Q18 Only Turkish Bank among peers whose solvency ratios further improved QoQ even without BRSA forbearances 3Q17 YE17 1Q18 2Q18 Nov Basel III compatible Additional Tier I issuance TL 5 billion Perp NC5 in The effect of 0.1 TL decrease /increase in USD/TL parity on CAR is ~7 bps The effect of 1 ppt interest rate increase/ decrease on CAR is ~2 bps Buffers (%) Capital Conservation Buffer Counter Cyclical Buffer** N.A N.A SIFI Buffer* (Group I) Q18 BRSA Forbearance Tier I Issuance Internal Capital Generation Currency Effect Credit Risk&Asset Growth Other Market Risk Minimum CET I Minimum Tier I *SIFI Buffer is taken into consideration only on a consolidated basis. **Counter Cyclical Buffer will be determined in the relevant year. 16

17 Appendix INVESTOR RELATIONS Pg. 18 Pg. 19 Pg. 20 Pg. 21 Pg. 22 Pg. 23 Pg. 24 Pg. 25 Pg. 26 Composition of Assets&Liabilities Well balanced Securities Portfolio Retail Lending Portfolio Strong growth in mobile platforms continues VakıfBank with Numbers Diversified Funding Sources via Non-Deposit Funding Unconsolidated Key Financial Ratios Unconsolidated Balance Sheet Unconsolidated Income Statement 17

18 Composition of Asset&Liabilities Breakdown of Assets (%) TL/FC Mix in Total Assets Other* 17.2 Interbank 2.8 Securities 13.3 Loans % TL 43% YP Breakdown of Liabilities (%) TL/FC Mix in Total Liabilities Funds Bor SHE 7.6 Repo** Bonds Sub-Debt 4.0 Other % 46% TL YP Deposits 54.0 *Other includes Cash&Reserve Central Bank, Subsidiaries and Investment, Property and Equipment and Other. **Includes CBRT and market TL&other FC repo transactions 18

19 Well balanced security portfolio Total Securities (TL million) Portfolio Structure 55.3% TL FC 46,917 30,213 8,991 30% 16,766 52% 1,648 5% 1,937 6% 19,574 65% 13,550 42% 34,972 32, % 39,128 28,060 83% 80% % 0% 6,851 7,699 20% 16% 3Q17 4Q17 2Q18 HTM Trading AFS Share of total 42% 16% 42% Fixed Floating CPI Linkers 100% Security Breakdown (TL billion) % 36.0% Timely shift within securities in favor of HTM from 29.8% in 3Q17 to 83.4% in 3Q17 4Q17 2Q18 FC TL * Average of expected year-end CPI on CBRT Inflation Report and VakıfBank house view have been used since the beginning of

20 Retail Lending Portfolio General Purpose Consumer (TL billion) Residential Mortgages (TL billion) Credit Card Loans (TL million)* 11.6% 12.5% 26.1% % (2.6%) 6,801 7,123 7, % 8,580 3Q17 4Q17 2Q18 3Q17 4Q17 4Q18 3Q17 4Q17 2Q18 Retail Overdraft (TL million) 2,614 2, % 3,334 2, % Total Retail (TL billion) 14.6% % Breakdown of Retail Loans (%) Overdraft Auto Credit Card Mortgage H18 GPC Q17 4Q17 2Q18 3Q17 4Q17 2Q18 * Calculations based on monthly BRSA report including business and retail credit cards. 20

21 Strong growth in mobile platforms continues Active Mobile Banking Customers (#thousand)* Breakdown of Transactions 1,545 1, % 1,911 2, % 2,388 Mobile Banking 20.1% 1Q18 Call Center 3.1% ATM 32.8% 3Q17 4Q17 1Q18 2Q18 Active Internet Banking Customers (#thousand)* 38.0% 2,814 2,638 2,381 2,211 2, % 3Q17 4Q17 1Q18 2Q18 Internet 17.9% ~82% of all banking transactions executed via non-branch channels Branch 26.2% *At least once logged in within the last 3 months' time. 21

22 VakıfBank with numbers Distribution Channels&Customer (#) Efficiency ( 000 TRY) Personnel 16,747 POS Terminals 229,704 Assets per Employee 21,103 Assets per Branch 372,011 Outstanding Credit Cards Total Customers Total Payroll Customers Active Mutual Fund Customers 4.5 mn 21.5 mn 2.4 mn 1.6 mn Loans per Employee 14,083 Loans per Branch 248,256 Deposits per Employee 11,398 Deposits per Branch 200,935 Distribution Platforms 950* 4,113 2,814K 24/7 2,390K Branches ATMs Active Online Telephone Active Mobile Banking Banking Customers Customers *As of June

23 Diversified funding sources via Non-Deposit Funding Syndicated Loan Sub-debt Eurobonds DPR Securitizations Covered Bond IFI Borrowing US$ 1.5 billion outstanding April 2018 US$ million equivalent syndicated loan with 1 year and 2 year tranches, all in cost as Libor % and Euribor +1.20% for 1 year and Libor % for two years with participation of 35 banks from 17 countries. March 2017 US$ 250 million 3 year bilateral loan with ICBC Dubai. US$ 1.4 billion and TL525 million outstanding Tier II and 5 billion TL Tier I September 2018 TL 5 billion perpetual Tier I notes were issued with a fixed coupon rate. September 2017 TL 525 million subordinated notes (Tier II) were issued with a floating coupon rate set at 5 year sovereign + 3,5. Maturity of the notes are 10 years. February 2017 US$ 228 million equivalent of 2012 subordinated notes (Tier II) were exchanged. Coupon rate has been set at 8%, maturity of the notes is 10 years. January 2015 US$ 500 million equivalent subordinated notes (Tier II) were issued with a yield of 6.95%.Coupon rate has been set at 6.875%, maturity of the notes is 10 years. October 2012 US$ 900 million equivalent subordinated notes (Tier II) were issued with a yield of 6.08%. Coupon rate has been set at 6%, maturity of the notes is 10 years. After Exchange nominal amount is US $672 million. US$ 3.3 billion outstanding January 2018 US$ 650 million equivalent senior unsecured notes were issued with a yield of 5.85%. Coupon rate has been set at 5.75%, maturity of the notes is 5 years. May 2017 US$ 500 million equivalent senior unsecured notes were issued with a yield of 5.650%. Coupon rate has been set at 5.625%, maturity of the notes is 5 years. October 2016 US$ 500 million equivalent senior unsecured notes were issued with a yield of 5.614%. Coupon rate has been set at 5.5%, maturity of the notes is 5 years. June 2014 EUR 500 million equivalent senior unsecured notes were issued with a yield of 3,650%. Coupon rate has been set at 3.5%, maturity of the notes is 5 years. October 2013 US$ 500 million equivalent senior unsecured notes were issued with a yield of 5,149%. Coupon rate has been set at 5%, maturity of the notes is 5 years. US$ 1.9 billion outstanding October 2018 DPR borrowing amounting USD 300 million through treasury financing transaction within DPR securitization program. Total amount of transaction is procured tranche with a maturity of 10 years. May 2018 DPR borrowing in Euro and USD currencies, amounting USD 380 million equivalent in total, through future flow transaction within DPR securitization program. Total amount of transaction is procured in six separate tranches of which has a maturity of 5 years. October 2016 DPR borrowing in Euro and USD currencies, amounting USD 890 million equivalent in total, through future flow transaction and treasury financing transaction as well as other required transactions within DPR securitization program. Total amount of transaction is procured in seven separate tranches, USD million of which has a maturity of 5 years and USD million of which has a maturity of 7 years. EUR 500 million and TL 3.7 billion outstanding February 2018 TL 1 billion Covered Bond notes were issued with the maturity of 5 years. December 2017 TL 1.3 billion Covered Bond notes were issued with the maturity of 5 years. October 2017 TL 1.3 billion Covered Bond notes were issued with the maturity of 5.5 years. May 2016 Euro 500 million equivalent Covered Bond notes were issued with a yield of 2.578%. Coupon rate has been set at 2.375%, maturity of the notes is 5 years. US$ 1.8 billion outstanding World Bank outstanding funding US$ million EBRD outstanding funding US$ million (US$ 182 million under DPR Program and EUR 50 million under Covered Bond Program included) EIB outstanding funding US$ million KFW outstanding funding US$ million AFD outstanding funding US$ 92.8 million TL Bonds Outstanding TL bonds amounting TL 10,2 billion as of September30,

24 Unconsolidated Key Financial Ratios 9M Q18 Profitability* ROAE 18.1% 17.5% 16.8% 14.9% 16.6% ROAA 1.6% 1.5% 1.5% 1.2% 1.3% Cost / Income 37.2% 37.2% 42.1% 28.9% 33.8% Cost / Assets 1.7% 1.6% 1.8% 1.5% 1.5% Fee / Cost 29.8% 30.1% 37.9% 44.9% 39.4% Liquidity Loans / Deposits 119.4% 117.8% 123.3% 123.6% 123.6% TL Loans / Deposits 123.2% 125.8% 127.6% 129.4% 129.4% Liquidity Coverage Ratio (Total) 97.7% 235.4% 106.7% 115.9% 115.9% FC Liquidity Coverage Ratio 204.8% 102.2% 240.1% 272.4% 272.4% Asset Quality NPL Ratio 4.0% 4.0% 3.9% 3.9% 3.9% Coverage Ratio 86.6% 86.4% 77.8% 77.0% 77.0% Cost of Risk 1.4% 1.3% 0.5% 1.6% 1.4% Solvency CAR 16.2% 15.5% 15.0% 17.2% 17.2% Tier I Ratio 12.8% 12.3% 11.8% 14.3% 14.3% Leverage 10.1X 10.6x 10.7x 12.2X 12.2X *Cumulative 24

25 Off-B.S. Liabilities & SHE Assets INVESTOR RELATIONS Unconsolidated Balance Sheet 3Q17 YE17 2Q18 TL USD (thousand) TL USD TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with Central Bank 26,242,801 7,366,359 28,644,824 7,577,996 35,533,591 7,765,887 35,775,875 5,962, % 0.7% (19.1%) (23.2%) Interbank 5,743,011 1,612,064 13,539,930 3,581,992 7,431,301 1,624,115 10,065,427 1,677, % 35.4% 4.1% 3.3% Securities 30,213,110 8,480,825 32,252,573 8,532,427 34,972,449 7,643,249 46,916,525 7,819, % 34.2% (7.8%) 2.3% Loans 174,017,657 48,846, ,932,228 48,394, ,101,417 45,917, ,842,821 39,307, % 12.3% (19.5%) (14.4%) Subsidiaries & Investments 2,335, ,456 2,563, ,047 2,841, ,912 2,916, , % 2.7% (25.8%) (21.7%) Property & Equipment 1,380, ,583 1,417, ,937 1,472, ,902 1,552, , % 5.4% (33.2%) (19.6%) Other 10,598,615 2,975,033 13,202,155 3,492,634 18,006,682 3,935,371 24,809,781 4,134, % 37.8% 39.0% 5.1% Total Assets 246,815,194 69,281, ,571,710 71,579, ,045,440 66,886, ,410,429 58,901, % 15.5% (15.0%) (11.9%) Deposits 145,718,983 40,903, ,277,122 41,078, ,416,614 37,244, ,888,301 31,814, % 12.0% (22.2%) (14.6%) Funds Borrowed 27,502,137 7,719,855 28,307,621 7,488,789 38,171,150 8,342,327 47,550,990 7,925, % 24.6% 2.7% (5.0%) Other 50,421,072 14,153,204 62,202,160 16,455,598 69,237,066 15,131,800 86,216,497 14,369, % 24.5% 1.5% (5.0%) Provisions 940, ,045 1,526, ,965 2,133, ,217 2,062, , % (3.3%) 30.2% (26.3%) Shareholders Equity 22,232,335 6,240,620 23,257,818 6,152,862 26,087,389 5,701,414 26,692,436 4,448, % 2.3% (28.7%) (22.0%) Guarantees 45,406,765 12,745,687 50,767,584 13,430,578 60,188,610 13,154,255 72,280,972 12,046, % 20.1% (5.5%) (8.4%) Commitments 45,998,582 12,911,810 48,326,032 12,784,665 60,621,008 13,248,756 67,032,791 11,172, % 10.6% (13.5%) (15.7%) Derivatives 58,981,719 16,556,179 60,733,519 16,067,069 91,135,081 19,917, ,300,026 20,716, % 36.4% 25.1% 4.0% 25

26 Unconsolidated Income Statement (TL-thousand, %) 9M17 2Q18 YoY QoQ Net Interest Income 6,302,521 2,571,782 3,372,167 8,250, % 31.1% Net Fee & Com. Income 958, , ,991 1,555, % 17.3% Dividend Income 93,501 73,034 12, , % (83.4%) Net Trading Income 122, , , , % 47.7% Other Income 1,182, , ,865 1,180,083 (0.2%) (365.4%) Total Revenues 8,660,306 3,205,104 4,632,036 11,693, % 44.5% Operating Expenses -3,217,881-1,350,387-1,337,061-3,951, % (1.0%) Provisions -1,919, ,458-2,133,876-3,923, % 329.8% Tax Provisions -700, , , , % (38.0%) Net Income 2,822,084 1,073, ,858 3,110, % (8.3%) 26

27 A member of BIST Sustainability Index Investor Relations Saray Mahallesi Dr. Adnan Buyukdeniz Cad. A1 Blok No: 7a Umraniye/Istanbul (Akyaka Park Mall) Tel (90-216) Fax (90-216) With this recycling paper, following items have been saved annually; 60 kg of landfill 14 kg of CO 2 and greenhouse gases 1,519 liter of water 192 kwh of energy 98 kg of wood Disclaimer Notice: This report has been prepared by VakıfBank, Investor Relations Department and is provided for information purposes only. Although the information on which the report is based has been obtained from sources which we believe to be reliable, no representation or warranty is made by VakıfBank for the accuracy or completeness of the information contained herein. Information contained herein is subject to change without notice. VakıfBank accepts no liability whatsoever for any direct or consequential loss of any kind arising out of the use this document or any part of its content.